Sumo Group, the listed video game maker with studios in Nottingham, has raised £13.7 million to help fund further M&A activity.
The company raised the funds via a placing of around 7.6 million new ordinary shares priced at 180 pence per share.
Proceeds will be used to take advantage of potential M&A opportunities. This follows several key acquisitions for the company over the last few years.
In May, it acquired Lab42, a cross-platform work for hire studio, for around £491,000 in a move that added more capacity.
In February 2019, Sumo swooped for West Yorkshire’s Red Kite Games in a £2 million deal.
And, in August 2018, it acquired indie games maker The Chinese Room from founders Dan Pinchbeck and Jessica Curry for £2.2 million.
“Given the fragmented nature of the market and opportunities arising from the COVID-19 situation, the group continues to be focused on accelerating expansion through specifically targeted acquisitions,” the group said in a statement.
“Government restrictions resulting from the COVID-19 pandemic continue to positively impact the group’s underlying market, with video gaming activity growth continuing to exceed original forecasts. As a result, trading performance remains comfortably in line with full year market expectations.”
Zeus Capital and Investec Bank acted as joint bookrunners and joint brokers in connection with the placing.